CPD calls on govt to revoke ‘unfair’ US trade pact
Staff Reporter :
The Centre for Policy Dialogue (CPD) has called on the newly elected Bangladesh Nationalist Party-led government to immediately scrap what it terms a “highly discriminatory” reciprocal trade deal signed with the United States in the final days of the interim administration.
The policy think tank warned that the agreement significantly erodes Bangladesh’s sovereignty and constrains its ability to pursue independent trade and investment relations with other countries.
The demand was made at a media briefing titled “Economic and Social Policy and Administrative Decisions of the New Government: 180 Days and Beyond,” held at the CPD office in Dhanmondi on Saturday.
Speaking at the briefing, CPD Research Director Khondaker Golam Moazzem said the deal runs counter to Bangladesh’s Smooth Transition Strategy (STS) for graduation from least developed country (LDC) status.
He noted that while the STS prioritises free trade agreements and foreign investment, the US deal limits Bangladesh’s autonomy in choosing technology partners and trade sources.
According to CPD findings, the agreement requires Bangladesh to gradually withdraw duties on US products, while giving Washington the authority to impose reciprocal tariffs on Bangladeshi exports.
Moazzem added that failure to comply with any condition would allow the US to levy additional duties.
CPD also pointed to several restrictive provisions, including clauses that would prevent Bangladesh from entering trade agreements with third countries that do not conform to US Sanitary and Phytosanitary (SPS) standards and Technical Barriers to Trade (TBT).
The deal further obliges Bangladesh to take action against third-country firms if their activities are deemed harmful to US exports.
In the digital sector, the agreement bars Bangladesh from introducing digital services taxes on US technology companies or imposing customs duties on electronic transmissions.
It also places wide-ranging commitments on the mineral and energy sectors, requiring direct US investment in critical minerals and compliance with US export control rules.
Additional obligations include sharing information on foreign direct investment from third countries, aligning with US export control policies, and signing agreements related to duty evasion and the import of nuclear products.
Moazzem noted that since formal notifications between the two countries have yet to be exchanged, the new government still has scope to withdraw from the agreement swiftly.
He suggested that any future negotiations should be based on equity and international legal principles, potentially drawing guidance from US Supreme Court jurisprudence.
Separately, CPD called for a reassessment of the Economic Partnership Agreement signed with Japan on 9 February.
Moazzem cautioned that duty-free access for LNG imports under the pact could deepen reliance on fossil fuels and slow Bangladesh’s shift toward renewable energy.
Beyond trade policy, CPD outlined several priorities for the government’s first 180 days, including strengthening local government institutions, introducing a “no electricity, no pay” policy in the power sector, and appointing ombudsmen for the banking, business and revenue sectors.
